NWSA  News Corporation

Exchange

NASDAQ

Sector

Consumer Services

Industry

Newspapers/Magazines

Market Cap.

7.70B

Vuru Grade

51.40/100

Current Price

$13.24
-0.05 (-0.38%)

Growth Price

$23.35
Undervalued by 76.35%

Stability Price

$21.05
Undervalued by 58.96%

Company Metrics

  • P/E 401.67
  • P/S 0.94
  • P/B 0.71
  • EPS -0.63
  • Cash ROIC 4.75%
  • Cash Ratio 0.75
  • Dividend 0.20 / 1.50 %
  • Avg. Vol. 2.36M
  • Shares 581.57M
  • Market Cap. 7.70B

Company Description

News Corporation operates as a diversified media company worldwide. Its Cable Network Programming segment engages in producing and licensing programming distributed through cable television systems and direct broadcast satellite operators primarily in the United States, Latin America, Europe, and Asia. The company's Filmed Entertainment segment produces and acquires live-action and animated motion... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

News Corp. CFO exiting, will work with company's real estate operations
Seeking Alpha - 10 hours ago
He'll be replaced by Susan Panuccio, currently CFO at News Corp. Australia. Singh isn't cutting all ties with the company: He'll work as senior adviser to the company on its digital property interests in India and join the advisory board of the company ...
Susan Panuccio appointed News Corp CFO, replacing Bedi Singh - The Australian
News Corp announces new chief financial officer - MuMbrella
News Corp. earnings: 19 cents per share, vs expected EPS of 18 cents
CNBC - Feb 9, 2017
Rupert Murdoch's News Corp. reported fiscal second-quarter earnings on Thursday that were essentially in line with analyst expectations.
News Corp revenue drops on weak ad sales - MarketWatch
News Corp Posts Second-Quarter Loss - Fox Business
News Corp CTO named Utilities winner in Benchmark Awards
iT News - Feb 21, 2017
Not only has the new platform enabled News Corp staff to deliver content to audiences much faster and with greater site responsiveness, the new CMS lets the publisher's IT staff add new features at a much greater pace - all valuable commodities in the ...
News Corp to Participate in the Morgan Stanley 2017 Technology, Media ...
Yahoo Finance - Feb 21, 2017
News Corp announced today that News Corp Chief Executive Robert Thomson will participate in the Morgan Stanley 2017 Technology, Media & Telecom Conference on Wednesday, March 1, 2017 in San Francisco.
News Corp Revenue Declines 2%
Wall Street Journal - Feb 9, 2017
News Corp's revenue fell slightly in the December quarter amid a weak ad market and currency fluctuations, but its digital real-estate and book-publishing divisions powered growth in operating income.
News Corp. Exits Rubicon Project Investment
AdExchanger - Feb 13, 2017
News Corp. offloaded its entire 8% investment in Rubicon Project, or 3.9 million shares, according to an SEC filing on Friday.
News Corp. profits surge thanks to digital performance
New York Post - Feb 10, 2017
News Corp., whose assets include the Wall Street Journal, HarperCollins and The Post, reported adjusted earnings that beat analysts' expectations as revenue from its digital properties surged.
Digital results deliver boost to News Corp - The Times (subscription)
News Corp.'s Upbeat Results Underscore National-Local Divide Among Publishers
TheStreet.com - Feb 10, 2017
News Corp. (NWSA) , owner of The Wall Street Journal, said this week digital sales of subscriptions and advertising now account for 27% of revenue at its largest unit, news and information services, which also includes publications in Australia and the ...
NSW minister Ray Williams says he may sue News Corp over illegal donations claims
The Guardian - Feb 21, 2017
New South Wales minister Ray Williams has described allegations he received illegal property developer donations as “completely false”, and signalled possible legal action against News Corp. News Corp alleged on Wednesday that leaked Liberal party ...
Lee breaks own scoring record
Byron Review - 11 hours ago
Community News Corporation | Byron, MN · Latest Dodge Center, MN, weather. weather sponsored by. News · Sports · Obituaries · Legals · Classifieds · Contact Us · The City Pages of West Concord · 2017 Dodge County Expo · Stories from Byron's first 150 ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for NWSA to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate NWSA's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$13.24 Current Price

$23.35 Growth Price (DCF)

Undervalued by 76.35%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: -22.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$21.05 Stability Price (EPV)

Undervalued by 58.96%


Discount Rate: 15.0%

$23.60 Book Price

Undervalued by 78.28%


Poor Cash Return on Invested Capital over the past 5 years

NWSA has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

NWSA has only created $4.75 of cash for every $100 invested.
Figures in USD. Fiscal year ends in June
20122013201420152016
Free Cash Flow 2.85B 169.00M 475.00M 453.00M 696.00M
divided by
Invested Capital 37.42B 11.09B 11.08B 10.99B 11.21B
Cash ROIC 7.62% 1.52% 4.29% 4.12% 6.21%

Poor Return on Equity over the past 5 years

NWSA has shown an inability to deliver strong results for shareholders. This could be due to poor management, NWSA operating in a highly competitive industry, or having a weak business in general.

NWSA has only generated $2.76 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in June
20122013201420152016
Net Income 1.41B 547.00M 294.00M -78.00M 250.00M
divided by
Stockholders' Equity 24.68B 12.56B 13.24B 11.95B 11.56B
Return on Equity 5.70% 4.36% 2.22% -0.65% 2.16%

Excellent Business Performance over the past 10 years

NWSA has been able to maintain profitability in good times and bad. This could mean NWSA has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

NWSA has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Free Cash Flow 2.80B 2.48B 1.15B 2.94B 3.30B 2.85B 169.00M 475.00M 453.00M 696.00M

Good Balance Sheet

NWSA's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Cash 7.65B 4.66B 6.54B 8.71B 12.68B 9.63B 2.38B 3.15B 1.95B 1.83B
Current Assets 15.91B 14.36B 15.84B 18.02B 21.78B 19.45B 4.64B 5.27B 3.98B 3.89B
Total Assets 62.34B 62.31B 53.12B 54.38B 61.98B 56.66B 15.64B 16.49B 15.09B 15.48B
Current Liabilities 7.49B 9.18B 10.64B 8.86B 9.57B 9.62B 2.17B 2.26B 2.16B 2.44B
Total Liabilities 29.42B 33.69B 29.90B 29.27B 32.47B 31.98B 3.09B 3.25B 3.15B 3.92B
Stockholder' Equity 32.92B 28.62B 23.22B 25.11B 29.51B 24.68B 12.56B 13.24B 11.95B 11.56B
Current Ratio 2.12 1.56 1.49 2.03 2.28 2.02 2.14 2.33 1.84 1.59
TL-to-TA 0.47 0.54 0.56 0.54 0.52 0.56 0.20 0.20 0.21 0.25

Low or No Reinvestment of Profits over the past 10 years

NWSA has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to NWSA operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Retained Earnings 5.56B 11.38B 5.84B 7.68B 12.05B 8.52B - 237.00M 88.00M 150.00M
Retained Earnings Growth - 104.80% -48.66% 31.40% 56.86% -29.26% -100.00% - -62.87% 70.45%

Highly Competitive Industry over the past 10 years

It's likely that NWSA is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely NWSA invests heavily in R&D and Sales, General & Administrative expenses.

Only $4.95 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Net Income 3.43B 5.39B -3.38B 2.54B 2.89B 1.41B 547.00M 294.00M -78.00M 250.00M
divided by
Revenue 28.66B 33.00B 30.42B 32.78B 33.41B 33.71B 8.89B 8.57B 8.63B 8.29B
Net Profit Margin 11.96% 16.33% -11.10% 7.75% 8.66% 4.17% 6.15% 3.43% -0.90% 3.01%

Varying Pricing Power over the past 10 years

NWSA has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$44.51 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Gross Profit 10.01B 12.47B 10.86B 11.76B 12.35B 33.71B 3.47B 3.44B 3.61B 3.56B
divided by
Revenue 28.66B 33.00B 30.42B 32.78B 33.41B 33.71B 8.89B 8.57B 8.63B 8.29B
Gross Margin 34.93% 37.78% 35.70% 35.89% 36.96% 100.00% 39.04% 40.06% 41.79% 42.98%

High Capital Intensity over the past 10 years

NWSA spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

62.52% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Capital Expenditure 1.31B 1.44B 1.10B 914.00M 1.17B 939.00M 332.00M 379.00M 378.00M 256.00M
divided by
Net Income 3.43B 5.39B -3.38B 2.54B 2.89B 1.41B 547.00M 294.00M -78.00M 250.00M
Capital Expenditure Ratio 38.18% 26.79% -32.59% 36.00% 40.46% 66.74% 60.69% 128.91% -484.62% 102.40%

Very Strong Dividend History over the past 10 years

NWSA has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests NWSA is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Dividend Paid 369.00M 373.00M 366.00M 418.00M 500.00M 593.00M 20.00M 24.00M 30.00M 147.00M
divided by
Shares Outstanding 2.19B 2.97B 2.61B 2.63B 2.63B 2.50B - 579.70M 581.00M 582.50M
Dividend Paid Per Share 0.17 0.13 0.14 0.16 0.19 0.24 - 0.04 0.05 0.25
Price at Year End 19.67 8.51 13.62 14.34 17.84 24.61 17.91 15.78 13.52 11.46
Dividend Yield 0.86% 1.48% 1.03% 1.11% 1.06% 0.96% - 0.26% 0.38% 2.20%

History of Stock Buybacks over the past 10 years

NWSA has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Shares Outstanding 2.19B 2.97B 2.61B 2.63B 2.63B 2.50B - 579.70M 581.00M 582.50M
Stock Bought Back - -26.25% 13.70% -0.57% -0.19% 5.15% - -100.00% -0.22% -0.26%
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